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Improving connections withinthe SC, in the experience of alarge shipperAndreas RauschVice President Global Procurement and LogisticsSurface Transportation and Warehousing, BASF SEA. Rausch, BASF SE 1

Our six values• SustainableProfitable Performance• Innovation for theSuccess of Our Customers• Safety, Health andEnvironmental Responsibility• Personal andProfessional Competence• Mutual Respect and OpenDialogue• IntegrityA. Rausch, BASF SE 2

BASF – The Chemical CompanyThe world´s leading chemical company• Chemistry is about every aspect of life.• We are connected to deliverintelligent and sustainable solutions.• Sales 2009: €50,693 mill.• EBIT 2009: €3,677 mill.• Employees (December 31, 2009): 104,779• About 1,300 new patents filed• 6 Verbund sites and about 380production sitesA. Rausch, BASF SE 3

Organization of the BASF Group• 6 business segments contain 15 operating divisions which bear theoperational responsibility and manage 72 global and regional businessunits• Regional divisions contribute to the local development of BASF’sbusiness and are responsible for optimizing the infrastructure• 3 central divisions, 5 corporate departments and 9 CompetenceCenters provide Group-wide servicesA. Rausch, BASF SE 4

ChemicalsPlasticsPerformanceProductsFunctionalSolutionsAgriculturalSolutionsOil & GasBASF SegmentsInorganicsPerformancePolymersDispersions& PigmentsCatalystsCrop ProtectionOil &GasPetrochemicalsPolyurethanesCare ChemicalsConstructionChemicalsIntermediatesPaper ChemicalsCoatingsPerformanceChemicalsNutrition& HealthA. Rausch, BASF SE 5

BASF sales by customer industry*Percentage of sales in 2009ChemicalsAutomotive /Construction / UtilitiesAgriculture /Plastics industry / Oil industryElectrical / Electronics /Furniture / PaperOther industries> 15%10-15%5-10%< 5%10-15%* Distribution by direct customers of BASFA. Rausch, BASF SE 6

BASF worldwide & regionalNORTH AMERICA:9 bln €AntwerpLudwigshafenEUROPE:29 bln €ASIA:9 bln €FreeportGeismarSOUTH AMERICA:4 bln €NanjingKuantanKey production siteVerbund site(Turnover 2009)The global production network requires a modern & professional supply chain,and adequate logistics services to guarantee a smooth & efficient product flowA. Rausch, BASF SE 7

Procurement SegmentsMaritime, Air,Terminal ServicesSurface transportation,WarehousingPackagingTravel ManagementA. Rausch, BASF SE 8

Supply & distribution channelsVolumes, Europe 2008RAILROADSEABARGE• Conventional• Intermodal• Bulk & packed• Container• Bulk• Bulk11 %7 %39 %11 %4 %34 %100 %A. Rausch, BASF SE 9

Procurement Logistics ServicesSurface Transportation Services – EuropeProducts> 2.500Consignments> 10.000Sites and otherpoints of loading> 100Combinations> 20.000Example: Bulk deliveries road/intermodal EuropeA. Rausch, BASF SE 10

Decentralized structure but centrally leadLinked Sites in EAWA:► South Africa(Port Elizabeth)► Turkey (Gebze)► Middle East, North Africa(Dubai)BradfordClermont de l´OiseAntwerpCopenhagenLudwigshafenBaselWarsawMoscow• Over 245 BASF Sites acrossEurope• Procurement HUBs established ineach Region• Procurement conducted for allintegrated Sites only through theseHUBs• Procurement Verbund Teamsestablished and functionally lead• Common Procedures, Processesand Tools are used across EuropeTarragonaCesanoMaderno• Standard requirements plusbusiness specifics• Coordinated market approach andjoint tenderA. Rausch, BASF SE 11

Guiding principles are the foundation• BASF Group interest comes beforecompany / site interest• Adhere to our global procurementguidelines• Ensure transportation safety andsecurity• Secure capacity• Balance service quality, cost andenvironmental impact• Be able to tender• Avoid dependencies• Create transparency and measureA. Rausch, BASF SE 12

Standard procurement processStrategy developmentMarket structuresand developmentsProcurement strategyper segmentExpected service,quality, volumesTender processTenderpreparationRFQAllocationscenariosFinalnegotiationTenderawardDaily operationSupplierevaluationAllocationmonitoringSupply ofservicesA. Rausch, BASF SE 13

BASF requirements towardsthe Service ProviderEUROPEAN SERVICE PROVIDER MARKETPotential Service Provider MarketSQAS / Requirement profilesLoad securing, dangerous goods ability,equipment requirements, etc.Regional business setup, Specialists, Cargo Network, IMability, product requirements, pre-loading limitationsService quality requirements (SPELOG)BasicrequirementsTransportationsafetySpecial servicesQualityService Provider Marketrelevant for BASFA. Rausch, BASF SE 14

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